FAQ

Yes. If we are successful in securing you a No Doc Loan offer which meets your approval that can be utilised with any of the commercial finance facilities. The full range of business vehicle finance products is offered by most lenders including Car Leasing. You can request Car Leasing, No Doc Chattel Mortgage, No Doc Commercial Hire Purchase. These loan types differ in the way they treat GST and how and when a tax deduction benefit is realised. They are also suitable for different accounting methods and vary with when the asset is entered into the business balance sheet. This reflects the ownership of the car in title over the loan term.

No Docs Car Loans are considered a higher risk than fully documented loans. They can be achieved at an advertised interest rate but with stricter criteria and additional loan conditions. In some cases, a higher interest rate may apply. Interest rates in general vary according to the cost and ability of lenders to acquire funding and in response to other monetary conditions and the wider economic environment. When making any motor loan offer, a lender will assess the risk of the individual application and attach the interest rate they are prepared to offer to that individual business. Interest rates on low doc loans will vary based on individual lenders. Not all lenders offer no docs loans.

No Docs does not technically mean without any material or support for the application entirely. Essential for this type of loan is a current ABN and proof of identity of the business owner who is usually the applicant. From that minimum requirement, the more docs a business can provide, the more attractive the application to lenders. In principle, the stronger the application is supported, the lower the risk assessment and the better the loan conditions. A good credit profile is usually required. So it is in a business owner’s best interests to prepare as much financial material as possible to support their loan application. The docs should focus on the ability of the business to repay the debt over the term of the loan.

The term docs is the reference used by the finance industry for documents, meaning financial documentation. Docs take the form of business accounts, records of income and outgoings, income tax returns, corporate financial statements, annual returns, BAS statements and other such documents that can verify the financial position of a business. This type of documentation is requested by especially banks in order to offer business vehicle finance. A business that does not have this level of documentation can apply for a no docs loan. This type of higher risk loan is offered by banks and non-bank lenders and is subject to individual lender requirements. Most businesses that have been operating for a period of time will have substantial documents so this type of loan is most often sought by businesses that are starting up.